La rivoluzione di Allianz sul mercato assicurativo italiano nell'ultimo anno

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La rivoluzione di Allianz sul mercato assicurativo italiano nell'ultimo anno

  1. 1. Allianz Capital Markets Day Making a difference Italy, France, Spain, Portugal, Turkey, Latin America Milan, July 18, 2012
  2. 2. Agenda J Welcome / making a difference Oliver Bäte Transforming the rules of the game George Sartorel A changing value proposition in Life Giacomo Campora Genialloyd – go for growth Leonardo Felician Telematics – introducing pay per use Anthony J. Bradshaw What the market could see Jacques Richier What the market could not see Jürgen Gerke Turkey – a European growth market Alexander Ankel IberoLatam region – leverage best practice Vicente Tardío Iván de la Sota Underwriting excellence Anthony J. Bradshaw Disclaimer Investor Relations contacts © Allianz SE 2012 A B C D E F G H I
  3. 3. Making a difference Oliver Bäte CFO Allianz Group Milan, July 18, 2012 Capital Markets Day
  4. 4. Agenda Introduction Excursion – sovereign debt crisis © Allianz SE 2012 A B A2
  5. 5. Making a difference Allianz at a glance Segments1,5 Regions1,5 Operating profit in % Operating profit in % EUR 104bn total revenues1 AM P/C EUR 1,653bn total AuM2 Emerging markets Germany Specialty insurance EUR 7.9bn operating profit1 6% 26% 11% 20% 202% economic solvency ratio2 47% 27% 30% 33% EUR 36.0bn market cap3 More than 78mn customers1 L/H Broker markets US, UK, AUS Western Europe © Allianz SE 2012 EUR 48.2bn S/H equity2 Approx. 6%4 dividend yield 1) 12/2011 2) 03/2012 3) 06/2012 4) As per 06/2012, based on dividend for fiscal 2011; no forecast 5) Relation of business segments excluding Corporate & Other and consolidation A3
  6. 6. Making a difference Capital Markets Day Milan – today’s universe France Italy Colombia Portugal Mexico Spain Turkey © Allianz SE 2012 Brazil Argentina A4
  7. 7. Making a difference One third of Allianz covered 0.5% 2.2% 2.9% Total EUR 103.6bn1 Portugal Turkey 10.7% CMD entities 27.5% Latin America Spain France Italy 10.6% 0.3% 2.2% 5.7% Allianz operating profit Total EUR 7.9bn1 CMD entities 30% 10.0% Turkey Portugal Latin America Spain France 10.9% 1) 2011 0.8% © Allianz SE 2012 Allianz revenues 0.6% Italy A5
  8. 8. Making a difference Continuing evolution of franchise … 1950 2000 1995 Acquisition of 100% Lloyd Adriatico 1987 Acquisition of majority stake in RAS 1959 Allianz branch France 2005 Allianz buys out RAS minorities 2007 Merger of RAS, Lloyd Adriatico and Subalpina creates Allianz Italy 2006 Foundation of Allianz SE via merger of Allianz AG and RAS Holding SpA. 1998 Merger AGF – Athéna-Allianz 2007 Allianz buy-out of AGF minorities 1968 Foundation of Group AGF 2009 AGF becomes Allianz France 1989 Foundation of Eurovida & Europensiones 1990 Allianz RAS: merger of Adriática & Cresa 1993 Merger with Allianz Industrial 1996 Merger with Lloyd Adriatico 1999 Allianz Seguros: foundation by merger of AGF Unión-Fénix, Allianz RAS and Athena, integration of Fénix Directo Sustainability initiatives © Allianz SE 2012 1966 Allianz branch Italy 2005 Target Operating Model Operational Transformation Program Global P/C Global Life A6
  9. 9. Making a difference … with demanding ambitions for the future Strategic focus Italy Mid-term outlook: Growth Operating profit  New integrated go-to-market strategy  Capital-light and advice-driven life business France  Profitable growth in selected business lines  Customer-centricity, simplification, digitalization Spain  Continue outperformance in growth and efficiency  Exploit growth opportunities in life Portugal  Leverage competitive advantages of Spanish business model  Consequent de-risking strategy Latin America  Continue implementation of Spanish business model  Exploit growth opportunities  Exploit growth opportunities © Allianz SE 2012 Turkey  Build scalable life and pension distribution A7
  10. 10. Making a difference Our agenda today Speaker Position George Sartorel CEO Allianz Italy Giacomo Campora CEO Allianz Bank Italy Leonardo Felician CEO Genialloyd Jacques Richier CEO Allianz France Jürgen Gerke CFO Allianz France Latin America Vicente Tardío Regional CEO Iberia and Latin America Spain Iván de la Sota CEO Allianz Seguros (Spain) Turkey Alexander Ankel CEO Allianz Turkey Italy France Telematics © Allianz SE 2012 Country / region Chairman Allianz Telematics SpA Anthony J. Bradshaw Underwriting excellence Head of Global P/C Allianz SE A8
  11. 11. Agenda Introduction Excursion – sovereign debt crisis © Allianz SE 2012 A B A9
  12. 12. Making a difference 1 Resilient and well diversified business model Well prepared Stable operating profit in tough environment … … thanks to diversification 2004 2005 Operating profit by business segment2 (in %) 2006 2007 2008 2009 2011 1) Historically reported figures excluding Banking segment 2) Based on historically reported figures excluding Corporate & Other, Banking and consolidation 34 49 7.2 2010 15 73 7.5 47 8.2 31 27 47 7.9 P/C L/H 13 28 59 10.1 13 25 62 9.0 17 23 60 6.9 14 23 63 6.3 12 17 22 © Allianz SE 2012 Operating profit1 (EUR bn) 26 AM A 10
  13. 13. Making a difference 2 Well prepared Low operating profit share in peripheral countries Operating profit1,2 (%) Revenues2 (%) GIPS GIPS Italy 10 7 Italy 10 4 86 83 Global lines Non-Europe Europe ex GIIPS © Allianz SE 2012 Global lines Non-Europe Europe ex GIIPS 1) Excluding Holding & Treasury 2) 2011, figures used for the split are not consolidated on a Group basis A 11
  14. 14. Making a difference 3 Limited exposure to peripheral sovereign debt Well prepared Absolute exposure (EUR mn) Relative exposure Carrying value Unrealized loss (gross) Ireland 176 Portugal 278 70 4,390 4,914 31,179 -800 Total 36,093 1.5% -361 Italy 4.9% -238 Sub-total 0.7% -18 Spain 2.4% -94 Greece 1.0% -11 -1,161 7.6% All ratios before policyholders and tax Carrying value in % of total investments 1) Ratios slightly overstated, because net unrealized losses are already deducted from shareholders’ equity Unrealized loss (gross) in % of shareholders' equity1 © Allianz SE 2012 3M 2012 Unrealized loss (gross) in % of required FCD solvency capital1 A 12
  15. 15. Making a difference Strong buffers and resilient margins in L/H (1) 4 Well prepared Business in force New business (based on aggregate policy reserves) Government bonds 19ys maturity, ~3.5% 95% A or better 230bp ~3.5% + strong buffer EUR 17bn of RfB equal 5.3% of aggregate policy reserves 2.7% Germany Reinvestment yield of 1.5% sufficient to pay all guarantees Covered bonds 10ys mat., ~3.7% 81% A or better ~16% Corporate bonds 7ys mat., ~3.3% 95% BBB or better ~18% ABS/MBS 17ys mat., ~3.8% 95% A or better Current1 yield 2011 Ø min. guarantee2 2011 1) Based on IFRS current interest and similar income 2) Weighted by aggregate policy reserves 180bp ~1.7% ~60% 2012e ~2.0% ~6% Reinvestment yield F/I 1Q 2012 © Allianz SE 2012 5.0% Ø guarantee of new business2 2012e A 13
  16. 16. Making a difference 4 Strong buffers and resilient margins in L/H (2) Well prepared Business in force New business (based on aggregate policy reserves) 4.3% 180bp 2.5% Current yield1 2011 France (L/H) Ø min. guarantee 2011 4.8%  APR2: EUR 26.5bn  Good asset/liability duration match Reinvestment yield F/I Guarantee Q1 2012 new business 2012e 380bp ~3.6% 1.0% Current yield1 2011 Spain (Life) 230bp ~1.9% ~4.2% 5.2% Ø min. guarantee 2011 320bp  Lapse ratio during crisis rather stable  APR2: EUR 50.6bn  Guarantee for most new policies 0% ~0.4% Reinvestment yield F/I Guarantee Q1 2012 new business 2012e  Positive guarantees mainly from top-ups of old policies 140bp Current yield1 2011 Ø min. guarantee 2011 1) Based on IFRS current interest and similar income 2) Aggregate policy reserves as of 31.12.2011 ~4.7% 290bp  APR2: EUR 5.6bn ~1.8% 3.8%  Underwriting and expense result: 155bp (2011) Reinvestment yield F/I Guarantee Q1 2012 new business 2012e  More than half of portfolio without guaranteed surrender values A 14 © Allianz SE 2012 Italy (Life)
  17. 17. Making a difference 5 Strong and resilient solvency Well prepared FCD solvency (in %) 100% 1Q 2012 183% Equities -30% 172% Int. rates -100bps 179%1 Combined stress 168%2  Economic capital based on marked-tomarket sovereign bond portfolio  Economic solvency ratio of 202% based on Solvency II confidence level of 50bps Economic solvency (in %) 1Q 2012 Equities -30%  Regulatory capital excluding unrealized gains on bonds, but including impairments on sovereign debt 202% 191% 171% Combined stress  Resilient even under combined shock of interest rates and equities 158%2 S&P rating © Allianz SE 2012 Int. rates -100bps  All solvency ratios after 40% net income dividend accrual AA (outlook negative) 1) Lower FCD capital driven by change in DAC write-off (shadow DAC) and negative impact from reserve discounting. 2) Contemporary shock of interest rates -100bps and equities -30% A 15
  18. 18. Making a difference 6 Continuing de-risking Well prepared Examples Peripheral exposure  Concentrate sovereign exposures in domestic carriers  In domestic carriers reduce exposure in the P/C segment  Where locked policyholder capital available, use spreads to close duration gap (Allianz Leben) Exposure to financials  Reduction of sub-bond banking exposures  Unicredit and Commerzbank de-risked  Reduction of un-collateralized banking exposure in cash-pool Interest rate and spread sensitivity  Selective duration management measures  Enhanced life product design and inforce management approach  Liquidity monitoring and buffer enhancements for lapse risk Cash returns and tail risk  Closure of life unit in Japan  Focus on P/C and AM growth initiatives  Further reduce exposure to mis-priced markets (e.g. high value of O&G, high NatCat exposures) © Allianz SE 2012 Key levers A 16
  19. 19. Making a difference To sum it up Resilient and well diversified business model 2 Low operating profit share in peripheral countries 3 Limited exposure to peripheral sovereign debt 4 Strong buffers and resilient margins in life 5 Strong and resilient solvency 6 Continuing de-risking © Allianz SE 2012 1 Al li anz w for unc ell pre erta p in t ared ime s A 17
  20. 20. Making a difference And now … © Allianz SE 2012 … making a difference
  21. 21. Transforming the rules of the game George Sartorel CEO Allianz Italy Milan, July 18, 2012 Capital Markets Day
  22. 22. Italy Italy at a glance Key data 2011 (Stat.) GPW, EUR bn P/C L/H -2.7% 117.2 36.7 2010 73.0 84.7 2011 2014e P/C L/H (Stat. GWP, %) 17.4 17.0 18.3 13.0 5.2 Source: P/C-ANIA +Zurich, Euler-Hermes, Allianz Global Ass.; Life-ANIA with cross border co.s w/o Mediolanum Freedom product; 2014e: Allianz analysis on Prometeia forecast Poste Vita R. Mutua Unipol FonSai 5.3 B2 © Allianz SE 2012 9.5 11.4 10.5 AXA 20.3 124.4 39.7 111.1 38.1 Market shares (2011) Generali  P/C mature market, dominated by agents (82%), currently price hardening in motor while non-motor suffers from low penetration and recessionary environment  L/H with strong presence of banks (50%) and post office (13%)  P/C market highly concentrated (first 3 players have 50% market share)  Government approved in 2012 so-called “liberalization package” containing several new regulations (bodily injury, anti-fraud, etc.) regarding P/C as an attempt to reduce claims costs and consequently MTPL tariffs 89.0 2009 Market specifics 126.5 37.5 80.4 L/H: 4.6% BBB+ +3.9% Generali 61mn 1,580bn 26,065 2.8% Intesa Sanpaolo Population: GDP (EUR): GDP/capita (EUR): Inflation: Insurance penetration: P/C: 2.4%  Country rating (S&P):      Market size and growth (CAGR)
  23. 23. Italy Allianz in Italy (1) Operating profit (EUR mn) -7.9% CAGR 12,852 4,190 8,662 +20.1% 849 12,826 10,905 3,986 589 3,990 345 8,840 662 646 370 6,915 P/C L/H 244 2009 2010 2009 2011 292 2010 Combined ratio (bps) 2011 Margin on reserves1 (%) 203 -7.6%-p 100.8 99.6 76.0 74.8 93.2 59 47 NBM 24.8 24.8 2010 2011 2.2% 2.4% 2.1% 2009 2010 2011 24.8 2009 1) Operating profit / average reserves (net)  ~ 6 million customers  Multi-channel distribution  ~2,200 agents with a large secondary sales-force (~14,000 salesmen) – primary distribution channel in P/C  ~1,500 financial advisors – best in class advisory skills, technology and products  ~1,500 bank branches – historical relationship with Unicredit in L/H  A direct company (Genialloyd) focused on motor business  ~ 5,000 employees  Rating A+/negative  Local regulatory solvency ratio 154% (31/12/2011) Legal setup 67 68.4 Claims ratio Expense ratio -12bps Highlights      1966 1987 1995 2005 2007 Market entry of Allianz in Italy Acquisition of majority stake in RAS Acquisition of Lloyd Adriatico RAS minority buyout Merger of RAS, Lloyd Adriatico and Allianz Subalpina into Allianz S.p.A. © Allianz SE 2012 Revenues (EUR mn) B3
  24. 24. Italy Allianz in Italy (2) 2011 Product mix (Stat. GWP) P/C Distribution mix (Stat. GWP) Other 7% Banks 2% Accident 8% Motor 65% Profitability Brokers 5% Direct 8% Others 2% 2,383 Risk-adjusted capital 1,890 Liability 7% Return on risk-adjusted capital1 2010 Agents 83% L/H Traditional 49% Unit-linked 51% HQ + Brokers 9% 20% Banks 50% 27% 2011 1,686 Risk-adjusted capital Agents 20% Return on risk-adjusted capital1 1,004 29% 12% FAs 21% 2010 1) Operating profit as % of RAC eop 2011 B4 © Allianz SE 2012 Property 13%
  25. 25. Agenda 1 High performance company 2 3 4 5 6 Market challenges Go-to-market strategy New distribution model Innovation © Allianz SE 2012 Outlook B5
  26. 26. Italy A high performance company ... Combined ratio1 (%) 99.3 106.5 93.9 79.5 75.5 Reserve ratio1 (%) 101.6 75.1 69.5 139 P/C 24.4 27.0 23.8 2009 40 Allianz 2011 Allianz (%)2 Market  Consequent cycle management anticipating profitability trends in the market (e.g. motor TPL) New business margin (%) Group: 60  Constantly better CR than peer group (Allianz 1Q12: 91.6%)  Strongest claims reserves in the market 2009 Market ER Market LR New business mix 136 26.5 2011 Allianz ER Allianz LR L/H 161 159  Growing in a very difficult market (Allianz 1Q12 GWP +1.5% vs. flat market) 35 65 2.2 3.5 3.0 1.4 1.0 2009 Market 2.1 2011 Traditional Bank channel Unit-linked  Resilient life profitability due to strong proprietary networks  Good lapse protection  Increasing share of capital light products  Conservative and liquid investment portfolio Proprietary channels Solvency ratio3 (%) 117 140 134 15 26 78 140 154 15 Generali Regulatory solvency Unipol Milano Cattolica Allianz © Allianz SE 2012  Flight to quality as attractive value proposition in both L/H and P/C 24 FonSai  Very strong capital adequacy3 without making use of Italian anti-crisis decree  Ability to benefit from sector consolidation Impact of anticrisis decree 1) CR and reserve ratio according to Italian local accounting principles to ensure comparability 2) 5 year average 2007-2011; Source: ANIA, individual new business including cross border; Allianz excluding Antoniana Veneta Popolare Vita (AVPV) 3) Regulatory solvency as of 31.12.2011 B6
  27. 27. Italy … with superior claims performance … … in claims key indicators …1 Net Promoter Score: > 40% Frequency (%) 6.3% … in quality of service2 … 6.0% - 4.6% … in future sustainable business3 … # of motor open litigation (x 1,000) Market Allianz 295 270 1,792 2010 Market 25.5 + 9% Average cost (EUR) 1,823 26.3 - 3% 2011 Market 2010 Allianz 2011 Allianz - 1.7% … and in the efficiency3 ISVAP penalties related to motor claims (2011; EUR) Allianz Speed of settlement (%) 70.4 72.5 + 2.9% Market Allianz 1) Source: ANIA, statistica rapida (4Q 2011) 2) Customer focus survey, 2011 3) Source: ISVAP, 2011 Fondiaria Sai Generali Groupama Unipol Zurich Cattolica … Allianz 5,635,929 5,067,205 3,798,116 3,242,709 2,038,671 1,389,051 © Allianz SE 2012 Market 397,153 B7
  28. 28. Italy ... attractive for customers and salesforce MTPL – conversion rate1 2011/2012 - Conversion rate Quotations Ability to adapt tariff structure multiple times p.a. (e.g. 6 x in 2011) 60000 29% 50000 27% 25% 40000 23% Highly competitive new business tariffs (Allianz 1Q12 MTPL new business EUR 76mn + 32%yoy) 20000 Successful steering of effective pricing towards technical pricing 10000 Improved retention ratio 30000 21% 19% 17% 15% 0 A ug Sep Oct No v Dec Jan Feb M ar A pr M ay Life – segregated fund performance Long-term relationship with clients 6% 5.05% 4% 4.42% 1.70% 2% 5.02% 4.34% 4.22% 4.21% 3.91% 0.70% 1) Allianz RAS and Allianz Subalpina 2) Istat 2009 Strong Allianz capital position 3.87% 1.60% 2008 Advisory-driven sales process 2.70% 4.03% 3.20% Inflation rate2 0% 2007 4.51% Quality products with strong performance 2010 Allianz Vitariv segregated fund gross return Mkt. segregated funds gross return Good result in agent channel at 1Q12 (GWP: +8.6% vs. -8.5% market) 2011 B8 © Allianz SE 2012 Jan Feb M ar A pr M ay Jun Jul
  29. 29. Agenda 1 High performance company 2 3 4 5 6 Market challenges Go-to-market strategy New distribution model Innovation © Allianz SE 2012 Outlook B9
  30. 30. Italy A promising market with substantial challenges ... AZ view: present & near term future Interest rates  Italian government bond spread volatile  High deposit rates offered by banks  Traditional life business challenged Equity market  Volatility with negative impact on managed savings segment  Opportunity for advice-driven and structured life products Competition  Market concentration likely to increase  Allianz set to grow above market in P/C segment Regulation  Increasing customer transparency and price comparison  Medium-term uncertainty on consequences of Monti law Technology  Digitalization increasingly disrupting status quo  New opportunities across the whole value chain Distribution  Agents under pressure  Multi-mandate increasing, Direct growing fast Traditional business models increasingly challenged © Allianz SE 2012  Saving propensity remains at high level, although in decline er ne ed s& Mo be ha du vio lar r ity Household savings Cu sto m Domestic economy  Negative economic outlook for 2012 and 2013  Decreasing new car registrations  Strong decline of new mortgage applications n tio za el ali od git Di nm tio ibu str Di Key factors B 10
  31. 31. Italy … where customer behaviour is changing ... Less developed insurance culture, but also weaker welfare state  Low penetration of insurance products outside of mandatory MTPL 113 > 55 Senior Consequences 110  Greater need of Italian families to cover most critical risks 107 104 45 - 54 Mature 101 <44 Adults 98 95 2000 2002 2004 2006 2008 Internet usage rising, but hybrid customer cannot fully satisfy all needs “I buy little via the internet because ...” 2 Agree or strongly agree with statement (% of internet population, 2011) 53.7% 47.7% 43.6%  Growing demand for differentiated protection cover ranging from basic protection to fully tailored solutions  Pressure on insurers to optimize pricing strategy Prefer to see personally what I buy and talk to the vendor I have more fun to buy via traditional channels or shops © Allianz SE 2012 Disposable income by age group (base 100 index)1  State welfare is further retreating due to austerity driven measures I don’t know how I can truly complain in case of a problem … and more of them have become hybrid 1) Istat 2010, Banca d’Italia, Italian household statistics 2010 2) Group elaboration on Audiweb view data 2/2012 – including apps B 11
  32. 32. Italy Allianz’ strategic response Key building blocks in place  Multi-access / cross-channel customer acquisition  Modular offer / product architecture  Dynamic market based pricing Go-to-market strategy with a new distribution model with leading technical & operations competencies and cost leadership for competitive advantage  “One Allianz” network based on new partnership model  Digital agency  Multi access / cross channel integration  Telematics – “Anywhere / Anytime”  Leading pricing, underwriting processes and competencies  Best-in-market claims operations  Digitalization of the business model  The Allianz “Smart Spend” culture © Allianz SE 2012  Back to basics in life insurance B 12
  33. 33. Agenda 1 High performance company 2 3 4 5 6 Market challenges Go-to-market strategy New distribution model Innovation © Allianz SE 2012 Outlook B 13
  34. 34. Italy Multi-access customer entry Example: FastQuote (MTPL) Simple cost efficient process to attract new clients via SMS / WEB Next step: Extend FastQuote to other retail lines © Allianz SE 2012 > 500,000 requests in 12 weeks B 14
  35. 35. Italy Digital agency as key enabler Full version 2013 “Plug &Play” version 2011 (MTPL) Pre-sales & sales From …  WEB / SMS lead generation  Mobility  Family advisor approach  Modular products in just 48h installed and fully operational Service  Lean process  Digital signature … to  Renewal management  Paperless  Common IT backbone Already 800 agents active!  Sales academy B 15 © Allianz SE 2012 Back office
  36. 36. Italy Modular products – successful launch of ProteggiFamiglia  First modular product architecture launched in 2011 (“ProteggiFamiglia1.0”) with ~50.000 policies sold in 2011  2012 campaign (“ProteggiFamiglia 2.0”) launched in March, with over 20.000 new policies already sold  150 sales managers fully trained and 120 top agents trained in needs-based selling  Supported by iPad need-based selling tool  Fully tracked in salesforce.com © Allianz SE 2012  Target 2012: 100.000 policies B 16
  37. 37. Italy Our new go-to-market strategy Multi-access Modular product architecture Be where the customer is Mass customization with standardized components  Direct (price competitiveness and convenience)  “Offer” focus vs. “Product” focus  “Modular” add-ons for as little as EUR 10 per month  SMS / Apps / WEB (speed, instant response)  Agents / FA (consultancy and advice)  Telematics (“Anywhere / Anytime”)  Cross-LOB – “P/C and Life” approach Digital platform Move customers across channels  Lead generation platform  Right channel for customer need (self-service  advice) © Allianz SE 2012  Increase number of solutions sold to customers … with a digital platform for cross-channel development of customer value B 17
  38. 38. Agenda 1 High performance company 2 3 4 5 6 Market challenges Go-to-market strategy New distribution model Innovation © Allianz SE 2012 Outlook B 18
  39. 39. Italy “One Allianz” network ... Partner model Enhanced perimeter Focus on customers Digital platform “One Allianz” network © Allianz SE 2012  2,200 agents  14,000 secondary sales force … by 2013 – with a national communication initiative B 19
  40. 40. Italy Transforming Allianz Italy’s distribution model … Pre-sales Sales Post-sales Common web Modular offer / needs-based selling e-payments Lead generation “Plug & Play” platform Network support services Mobility Local campaigns Sales academy Sales steering / salesforce.com Allianz placement platform Paperless Allianz Collabora Agency clustering Lean processes © Allianz SE 2012 Digital agency platform Digital enables the value chain transformation of a traditional agency Pilot running Work in progress B 20
  41. 41. Italy … with an innovative agent partnership model at its heart P/C retail – agent partner GWP (EUR mn) Appealing benefits +2%  Improved portfolio persistency 515 506 Combined 100% ratio 90% 1Q 2011 1Q 2012  Better risk profile and reduced pricing leakage  Growing new business through - lead generation - new sales tools and products  Improved secondary sales force steering, productivity and recruitment Life – agent partner GWP (EUR mn)  Enhanced process efficiency – lean and paperless +14% 1Q 2011 214 © Allianz SE 2012 188 1Q 2012 B 21
  42. 42. Agenda 1 High performance company 2 3 4 5 6 Market challenges Go-to-market strategy New distribution model Innovation © Allianz SE 2012 Outlook B 22
  43. 43. Italy Telematics – Allianz by your side “Anywhere / Anytime”... New way to compete  Better risk selection  Smarter pricing We already sell a variety of products via the traditional channel > 70,000 units sold  Consumption based, pay per use  Appealing customer interface (monthly billing)  New products with add-on services  Increasing ancillary profits SestoSensoKM (PPU1 for low mileage customers) In contatto (fleet telematics) © Allianz SE 2012 SestoSenso (service product) ... with a new B2C initiative for 2013 1) PPU = pay per use B 23
  44. 44. Agenda 1 High performance company 2 3 4 5 6 Market challenges Go-to-market strategy New distribution model Innovation © Allianz SE 2012 Outlook B 24
  45. 45. Italy Ambition 2014 Leverage competitive advantage for growth  P/C growth above GDP / above market  Maintain leading CR position vs. competitors  Continue to leverage scale and “Digital” for cost leadership  Invest in human capital and competencies Life focus on proprietary channels  Back to basics  Protect and enhance NBM © Allianz SE 2012 Maintain leading solvency position B 25
  46. 46. A changing value proposition in Life Giacomo Campora CEO Allianz Bank Italy, General manager Allianz Italy Milan, July 18, 2012 Capital Markets Day
  47. 47. Agenda 1 Allianz’ positioning in the Italian life market 2 3 4 5 Financial advisors Agents Bancassurance © Allianz SE 2012 Outlook and key take-aways C2
  48. 48. Italy Allianz’ Italian life business1 Stat. GWP by LoB Operating profit & margin/reserves (EUR bn) (EUR mn) Unit-linked 8.7 2.6 Traditional 8.8 4.1 8.1 6.9 293 245 3.4 247 67 4.7  Top 5 player by GWP in the Italian life market  3rd largest reserves with resilient profitability 203 59 3.5 6.1 Margin/reserves (bps) OP 58  Well diversified mix of business between 47 4.7 traditional and unit-linked products 3.4 2010 2011 3y avg New business by channel 2009 6.9 1.2 1.4 Tied agents 7.4 5.6 1.5 1.2 4.3 4.4 2009 2010 1.4 3.0 2011 Allianz Italy Bancass FAs 6.6 1.5 2011 NBM by channel (EUR bn) Bancass 2010 2.2 2.4 4.8 1.3 3y avg (%) Tied agents FAs 2.1 4.7  Advice-driven proprietary sales force 2.2 4.6 4.2 1.4 3.9 3y avg Investment portfolio EUR 26bn Fixed income 95.9% 3.1% 1.7% Equity 2.9% 0.5% Real estate 0.7% 2.6 1.2 1.0 2009 2010 2.3 1.4 2011 2.4 3y avg Traditional business 4.3% 73.4% Treasury & govt. Corporate Securitized Cash  Resilient new business margins 1.2 17.6% Alternatives 2.3  Selling own and manufactured products Minimum guarantee 1.9% Inforce 2011  Conservative and liquid investment portfolio  Sound spread over minimum guarantee 2.5% Current yield2 2011 © Allianz SE 2012 2009 New business 2012e  Low guarantee on new business 1) Allianz Group excluding AVPV 2) IFRS current investment and similar income on avg. aggregated policy reserves C3
  49. 49. Italy Macro economic environment Unemployment rate Youth unemployment rate 8.4% 8.4% 27.8% 7.8% Population 60.6mn 29.1% 25.4% > 65y 6.1% 20.3% 2008 2009 2010 2011 2007 2008 2009 2010 8.5mn 2011 BTP 5y Govt. bond yield 5.4% 30th Jun peak / trough Source: ISTAT 4.7% 4.6% 4.4% avg avg 4.3% 3.4% 3.3% Source: ISTAT, Bloomberg 4.8% 2002 3.1% 2003 2004 2005 3.3% 2.9% 2.9% 2.2% inflation rate 2001 4.3% 3.7% 3.9% BTP 5y 2000 5.2% 2006 2007 2008 2009 2010 2011 © Allianz SE 2012 2007 21.3% 11.7mn < 15y 6.7% 2012 C4
  50. 50. Italy Customers appear looking for safe harbours ... Italian life market New business by LoB (EUR bn) 42 100% 66 15% 67% 69 25% 52 30% 56 35% 364 50% 418 30% 85% 75% 70% 50% 42% 65% 52% 33% 2008 2009 2010 2011 5Y avg 384 39% 39% 48% 2007 341 416 35% 382 58% 2007 2008 61% 2009 65% 70% 2010 2011 61% 5Y avg © Allianz SE 2012 51 Reserves by LoB (EUR bn) Unit-linked Traditional Source: Ania, individual new business including cross border. 2011: adjusted new business figures not including top-up premiums consistent with previous years. Reserves including cross-border group business and provisions for amounts to be paid. C5
  51. 51. Italy ... but what they really need is advice! Allianz’ advice-driven strategy leads to clear results Innovative products with strong performance Qualified advice driven sales force Strong global brand and experience in asset management New business by LoB Market Allianz Italy Proprietary channels Bancassurance 60% Unit-linked 67% 55% 65% 40% Traditional 33% 45% 5Y avg. 5Y avg. 5Y avg. 5Y avg. Source: Ania. Individual business including cross border, bancassurance including “Poste”; AZ Group excluding AVPV © Allianz SE 2012 35% C6
  52. 52. Italy Our approach to the market – 3 pillars for Allianz’ business model Proprietary channels 1 Financial advisors 2 Tied agents1 Bancassurance 3 Unicredit ~1,500 ~2,200 ~1,500 high quality advisors tied agents 1.5bn 2.0bn 4.0bn GWP (EUR) 5Y average GWP (EUR) 5Y average GWP (EUR) 5Y average branches 10Y & 5mn 3mn average lasting “partnership” with customers average lasting “partnership” with customers & prospective customers prospective customers 1) Tied agents including headquarter © Allianz SE 2012 15Y C7
  53. 53. Italy Our strategic focus – convergence of Life and Asset Management ... Allianz Italy New business by LoB (EUR bn)1 3.9 6.9 7.4 5.6 6.2 100% 37 91% 74% 31% 51% 60% 60% 43% 42% 69% 9% 2007 49% 40% 40% 57% 2011 5Y avg 2007 41 44 43 41% 42 39% 59% 61% 58% 2010 2011 5Y avg 43% 58% 57% 2008 2009 41 42% 26% 2008 2009 2010 Unit-linked Traditional 1) Allianz Italy excluding AVPV 2) Reserves figures including group business 3) Ranking based on reserves as of 12/2011 … makes us the 3rd player in the Italian market3 C8 © Allianz SE 2012 7.1 Reserves by LoB (EUR bn)2
  54. 54. Agenda 1 Allianz’ positioning in the Italian life market 2 3 4 5 Financial advisors Agents Bancassurance © Allianz SE 2012 Outlook and key take-aways C9
  55. 55. Italy Successful business model – leveraging Allianz Global Lines ... Lever on the EXPERTISE of Allianz Group Involvement of the SALES FORCE © Allianz SE 2012 Analysis of COMPETITION … and excellent third parties C10
  56. 56. Italy Financial advisors fit perfectly with Allianz’ strategy Allianz Italy vs. market … with strong growth in non-guaranteed business Excellent mix of AuM … (EUR bn) FA Market 30% 9.5 16% 60% 8.1 6.9 53% 51% 44% 36% 64% 56% 49% 47% 2008 2009 2010 2011 23% 41% Dec 2011 Life +29% CAGR unitlinked 43% 40% Asset Mgmt. 47% 10.0 Dec 2011 © Allianz SE 2012 Banking AZ Bank FA Unit-linked Traditional Source FA market Assoreti Report C11
  57. 57. Italy One unit-linked product platform – freedom of choice for clients ... FLEXIBLE APPROACH ALL STAR ARTIFICIAL INTELLIGENCE Money Market Open TEAM Q Stone Formula 15 Formula 30 Formula 70 Open TEAM New Talent CHAMPIONS LEAGUE Q Selection Open TEAM Equity Open TEAM Long Short Formula 100 © Allianz SE 2012 PIMCO Authority Formula SRI C12
  58. 58. Italy ... with few, simple rules, the same for every TEAM Performance Open platform Closed system Clear rules … on a level playing field C13 © Allianz SE 2012 Competition
  59. 59. Italy excellent performance in volatile markets ... AuM ranking AuM 4/2012 Ytd Performance cumulated since launch1 3.05% 14.95% 4.54% Yearly avg. 1,860mn 1 PIMCO 654 1.91% 20.60% 6.06% 2 MORGAN STANLEY 263 6.54% 18.84% 5.57% 3 CARMIGNAC 209 5.83% 14.87% 4.45% 4 BLACKROCK 183 3.87% 14.55% 4.36% 5 SCHRODER 169 0.61% 11.20% 3.39% 6 PICTET 119 2.02% 10.57% 3.21% 7 ALLIANZ GLOBAL INV 91 1.00% 6.57% 2.06% 8 TEMPLETON 69 1.93% 2.05% 3.35% 9 JP MORGAN 55 3.79% 5.73% 1.77% SWISS & GLOBAL 50 0.66% 3.65% 1.13% 10 1) Performance data: 06/06/2012; product launched 04/2009 C14 © Allianz SE 2012 TEAM
  60. 60. Italy ... is key to our successful sales of non-traditional products FA market Ranking Life new business 12M2011, EUR mn 1,378 1. ALLIANZ BANK 2. FIDEURAM 3. B.CA GENERALI 4. DEUTSCHE B. FF 327 5. MPS FA 325 6. MEDIOLANUM 7. AZIMUT 8. UBI BANK 9. CREDEM 92 10. UNICREDIT FA Unit-linked 78 Source: Assoreti report Traditional 1,139 950 287 175 © Allianz SE 2012 119 C15
  61. 61. Italy © Allianz SE 2012 News. Videos. Email. Ideas. Clients. A top notch ecosystem for a “wow experience”. Speed, security, simplicity in a great design! C16
  62. 62. Italy All in one Expert information Videos Selling ideas Easier to read than a newspaper Make a hit Conversation starters Fresh news on corporate, markets, products, operations issues and clients’ initiatives can be read everyday in a magazine-like format. A revolutionary navigation system: intuitive flipping through contents, slideshows and videos. A new way to quickly search favourite subjects, swipe through different sections and news. Watch brand new, short videos on latest news, interviews with money managers, insights with the experts. Share best practice. Inspire and be inspired. The best ideas of our advisors, a support in the dialogue with the clients: videos, documents, tools to share during a visit. From products to services, just a touch away. C17 © Allianz SE 2012 News
  63. 63. Italy All in one Expert advice and analysis Portfolio overview Client asset portfolios at a glance: change views by asset allocation, risk analysis, product type  Interactive charts and tables  Details and transactions on each single contract  Alerts and notifications on portfolio and personal data Portfolio comparison  Portfolios by risk grade review  Portfolio comparison between two dates  View of the client’s risk profile  Focus on asset type variation in time  Risk contribution by single product  Losses/gains details and returns  Data show with highest transparency © Allianz SE 2012  Risk analysis C18
  64. 64. Agenda 1 Allianz’ positioning in the Italian life market 2 3 4 5 Financial advisors Agents Bancassurance © Allianz SE 2012 Outlook and key take-aways C19
  65. 65. Italy Tied agents – leveraging the FA experience Tied agents SQUADRA VINCENTE VITARIV ORIZZONTI ITALIA Unit-linked Segregated fund ORIZZONTI SICURI Multiclass © Allianz SE 2012 Financial advisors C20
  66. 66. Italy One platform to manage risk – flexible asset allocation, no need to lapse Orizzonti Italia Segregated fund Flexible allocation © Allianz SE 2012 VITARIV Unit-linked C21
  67. 67. Italy Substantial business potential in the agent channel to be unlocked Allianz SpA – new business mix Rendimento IT Vitariv EUR 250mn Life new business since launch Pimco 9% 24% 250 MStanley 5% 46% 9% BlackRock 4% 3% Pictet Orizzonti Sicuri Unit-linked + segregated fund 1w 2 Apr2011 3 4 1w 2 3 4 1w 2 3 4 1w 2 3 May Jun Jul 4 1w 2 3 1w 2 3 4 Aug Sep 1w 2 3 4 1w 2 Oct Nov 3 4 1w 2 3 4 1w 2 Dec 3 4 1w 2 Jan 2012 Feb 3 4 1w 2 Mar 3 4 51w Apr 2 3 4 1w May 2 3 4 1w 2 Jun C22 © Allianz SE 2012 AGI
  68. 68. Agenda 1 Allianz’ positioning in the Italian life market 2 3 4 5 Financial advisors Agents Bancassurance © Allianz SE 2012 Outlook and key take-aways C23
  69. 69. Italy Banks under pressure focusing on capital issues Performance of bank shares STOXX EUROPE 600 BANKS E – Price index 600 500  Sovereign debt crisis puts pressure on capitalization of banks 400 300  High deposit rates offered by Italian banks detract new business from life insurance 200 100 Source: Datastream Jan 07 Jul 07 Jan 08 Jul 08 Jan 09 Jul 09 Jan 10 Jul 10 Jan 11 Jul 11 Jan 12 Jul 12 Bancassurance market – new business (EUR bn) 60 50 40 43.9 49.4 36.4 35.5 = 28.8 30 20 12.0 6.1 10  Opportunity for banks to increase the interest margin exploiting a growing spread between investment returns and cost of funding  Bancassurance top line set to remain highly volatile © Allianz SE 2012 0 0 2007 Source: ANIA 2008 2009 2010 2011 1Q2011 1Q2012 C24
  70. 70. Italy Action plan to leverage our bancassurance channel Past 2011 CreditRas Vita New business by LoB (EUR bn) 4.3 3% 2.8 55% 2.1 42% 2008 Traditional 2009 2010 Planned actions 1 4.1 3.5 2007 Present & future 2011 Unit-linked 5Y avg Multiclass High quality advice-based insurance distribution leveraging FAs’ experience 2 Leverage superior PIMCO investment capabilities 3 Leverage Private Banking: 170 branches with exclusive distribution agreement 4 Increase sales productivity and re-focus retail network on life business through innovative products 5 Implementation of granular planning tools with continuous and shared monitoring of target achievements leading to intense and continuous focus on increasing NBM Future development of bancassurance in P/C non-motor business © Allianz SE 2012 3.8 2012 C25
  71. 71. Agenda 1 Allianz’ positioning in the Italian life market 2 3 4 5 Financial Advisors Agents Bancassurance © Allianz SE 2012 Outlook and key take-aways C26
  72. 72. Italy Outlook and key take-aways Allianz 3rd largest Italian life insurer by AuM Higher share of unit-linked business than Italian market Well positioned multi-channel distribution model Successful migration from traditional to unit-linked ... supported by innovative products ... with outstanding performance © Allianz SE 2012 ... sold by highly qualified agents and financial advisors C27
  73. 73. Genialloyd – go for growth Leonardo Felician CEO Genialloyd Milan, July 18, 2012 Capital Markets Day
  74. 74. Agenda 1 Direct – a growing market 2 3 4 5 Genialloyd top performer Investments in innovation Integral part of Allianz’ multi-access strategy © Allianz SE 2012 Outlook and key take-aways D2
  75. 75. Italy Italy – ”Direct” grows fast in motor … Direct market evolution (GWP) (EUR bn) CAGR +24.3% Key drivers of growth: CAGR +17.4% 3.8  Price sensitivity of consumers  Consumers buying on-line 1.7 16.2% 8.0% 5.4% 2009  Growing importance of aggregators 2011 2016e1 % Direct market shares 2011 (GWP) (%) share of total motor market Market characteristics: 29.2 21.3  Concentrated market. First 3 players writing >70% of direct GWP 20.7 11.8 7.2 Direct Line Genertel Genialloyd  Price hardening of MTPL market Linear Zurich Connect © Allianz SE 2012 1.1  Genialloyd already #3 (out of 8) with strong profitable top-line growth Source: Genialloyd analysis on ANIA data (sum of direct companies excluding FiloDiretto); total motor market: Ania +Zurich Insurance PLC 1) 2016 based on Genialloyd forecast D3
  76. 76. Italy … and is increasingly dominating new business GWP Direct (% of total market) In large cities Direct already reached 13.2% of the market 100% 86.8 8.0 x 2.0 2011 2.5x 16.2 2016e1 New business premiums Direct (% of total market) 31.4% penetration in the 25-55 age group in large cities 31.4 © Allianz SE 2012 100% 32.0 x 1.6 19.8 2011 Source: Genialloyd analysis on ANIA data (sum of direct companies excluding FiloDiretto); 1) 2016 based on Genialloyd forecast 2016e1 D4
  77. 77. Agenda 1 Direct – a growing market 2 3 4 5 Genialloyd top performer Investments in innovation Integral part of Allianz’ multi-access strategy © Allianz SE 2012 Outlook and key take-aways D5
  78. 78. Italy Genialloyd KPIs (EUR mn) Revenues Highlights Customers (x 1,000) +24% CAGR CAGR  Leading direct insurer in Italy +20% 635 280 Motor 228 1 Nonmotor 227 2009 353 4 520  Combined ratio consistently below market (Allianz 1Q12 CR: 92.5%) 443 4 276  Growth in line with direct market (Allianz 1Q12 GWP: +24%)  Highest customer satisfaction metrics in the Italian market 349  Over 12,000,000 quotations in 2011 2010 2011 2009 2010 2011 Operating profit2 AY Combined ratio1 (%) CAGR -0.6%-p +17%  Channel mix: - 92% internet / phone - 8% motor plug & play platform  Lowest expense ratio in the Italian P/C market (Italian GAAP)  Largest direct operation of Allianz group  357 employees at May 2012 Claims ratio 79.9 Expense ratio 19.8 97.4 80.1 99.1 83.6 21 22  Local regulatory solvency ratio 159% (31/12/2011) 16 © Allianz SE 2012 99.7 Legal setup 2009 17.3  1996 incorporation of Lloyd1885 15.5 2010 2011 1) CR 2011: ~2% due to large losses and hail 2) Excluding run-off 2009 2010 2011  2002 Lloyd1885 becomes Genialloyd D6
  79. 79. Italy Genialloyd DNA Customer passion Skills Enhance customer relationship:  Ability to reach customers via social media: Facebook fan page, Twitter, LinkedIn, YouTube  More than 1mn emails per year (service, communication, cross-selling, promotional offer, info on new products)  93% emails answered within 48h Always ask for customer feedback:  Quick and easy surveys on the net  Customer-driven product design  Excellence in pricing & underwriting - Ability to adjust tariffs structure multiple times p.a. (13 x in 2011) - Customized tariffs by segment  Large use of national data banks - Extensive U/W controls - Super FastQuote  Marketing capabilities: online, offline, one-to-one  Leveraging synergies with Allianz (HR, finance, administration)  Workflow driven company with high degree of automatization © Allianz SE 2012 50% of new clients brought in by word of mouth Efficiency  Call centers outsourcing strategy to improve scalability D7
  80. 80. Italy Genialloyd customers Word of mouth intention1 Churn intention1 66.0% 41.6% 51.0% 20.0% 8.7% Traditional players Main direct players Genialloyd top ranked for customer satisfaction  NPS - 53% new business, - 60% renewals Traditional players 7.0% Main direct players Genialloyd first in social media2 Rank Company Score/100 Facebook Twitter Youtube 1 Genialloyd 66.25 X X X 2 Direct Line 46.25 X X X  10 years in a row: BICSI3 Customer Satisfaction award 3 Sara 28.75 X X X 4 Linear 20.00 X  3 Milano Finanza innovation awards 5 AXA 16.25 6 Cattolica 11.25 X 7 Genertel 8.75 X 8 Zurich Italia 5.00 X  1 Allianz i2S award 1) Customer experience survey, Accenture, January 2012 2) As of January 2012. Observatory on 100 enterprises about communication via social media in Italy, Università Cattolica 3) Barometro Italiano Customer satisfaction index X © Allianz SE 2012  1 Insurance marketing award X X X D8
  81. 81. Agenda 1 Direct – a growing market 2 3 4 5 Genialloyd top performer Investments in innovation Integral part of Allianz’ multi-access strategy © Allianz SE 2012 Outlook and key take-aways D9
  82. 82. Italy Investments in innovation to foster growth …  FastQuote integrated in Facebook (FB)  Customer care (including claims) on FB and Twitter One-to-one marketing  Evolve towards a one-to-one outbound relationship via phone and App (from email)  One-to-one customized tariffs  More than 60% of contracts are already paperless - target: 90%  New system for automatic client documents recognition (ICR1) Motor  Real time tariff optimization Household  Fast quote and product modularization Term Life … in antifraud detection  Introduction of “one tap” contract signature (3Q12) Digitalization … in new products  Increase web site usability: +7.6% visits, +30.6% quotes Social media … in business processes Customer interface Apps for mobile … in technology Examples  Experience in place - to be scaled up Enhance antifraud techniques  Fraud prevention improved: up 3 x in 1H12 vs. previous year © Allianz SE 2012 Investments ... with focus on marketing, communication, clients process 1) Intelligent Character Reader D10
  83. 83. Agenda 1 Direct – a growing market 2 3 4 5 Genialloyd top performer Investments in innovation Integral part of Allianz’ multi-access strategy © Allianz SE 2012 Outlook and key take-aways D11
  84. 84. Italy Genialloyd – multi-access & cross-channel Multi-access for customers Cross-channel  Fast quote in use since 2009  57% of 2011 quotes fulfilled; 55,000 policies  Experience leveraged by Allianz Proactively manage leads across channels to increase conversion rates and up-selling/cross-selling Prospects from FastQuote Allianz to Genialloyd for new business Virtuous cycle Leads from Genialloyd to agents for advice and cross selling Leverage other channels Motor “plug & play” platform for sales via other channels (partnerships, affinity groups, small banks, car dealers) © Allianz SE 2012 In just 48 hours installed and fully operational D12
  85. 85. Italy Integration and operational leverage high Focus on growth Pre-sales Sales Customer proximity Customer relationship  Exploit internet growth opportunity matching customers changing behaviour  Take advantage of real time price optimization  Widen offer (P/C products for Italian family) and boost cross-selling  Develop new high potential partnerships Focus on efficiency Service low  Common call center outsourcing strategy  Common tariff platform  IT platform enhancement © Allianz SE 2012 Back office  Leverage scale of Allianz (administration, finance, budgeting & control, IT, HR, claims ) D13
  86. 86. Agenda 1 Direct – a growing market 2 3 4 5 Genialloyd top performer Investments in innovation Integral part of Allianz’ multi-access strategy © Allianz SE 2012 Outlook and key take-aways D14
  87. 87. Italy Outlook and key take-aways Genialloyd is the 3rd largest Italian direct insurer Genialloyd is an integral part of Allianz’ multi-access strategy Our ambition is to double in size and increase market share in the medium term We will continue invest for growth while maintaining profitability © Allianz SE 2012 Exploiting synergies with Allianz to maintain cost leadership D15
  88. 88. Telematics – introducing pay per use Anthony J. Bradshaw Chairman Allianz Telematics SpA, General manager Allianz Italy Milan, July 18, 2012 Capital Markets Day
  89. 89. Agenda 1 Telematics and motor insurance 2 3 4 The story so far Our experience © Allianz SE 2012 Outlook and key take-aways E2
  90. 90. Telematics Game changer or hype? Imagine a world …  with no date/policy anniversaries  with no NCD1 system  of real protection and not just financial indemnity  where insurance is ancillary  where social media is a distribution channel © Allianz SE 2012  where you can do this … Welcome! 1) NCD = no claims discount E3
  91. 91. © Allianz SE 2012 Telematics
  92. 92. Agenda 1 Telematics and motor insurance 2 3 4 The story so far Our experience © Allianz SE 2012 Outlook and key take-aways E5
  93. 93. Telematics Telematics usage to pick-up speed © Allianz SE 2012 ILLUSTRATIVE Worlwide:  More than 40 competitors  More than 50 PPU offers  More than three million vehicles equipped E6
  94. 94. Telematics The story so far  Retrofitted boxes that cost a lot to install, high data transmission cost - limited addressable market - network to manage - but this is the model with 1-2 million vehicles already in Europe  Fast evolution to lower-cost boxes, low data transmission costs - increase in size of addressable market - cross-subsidies to exploit - additional revenue streams  Cheap boxes self installed 1) Original equipment manufacturer © Allianz SE 2012  Standard equipment for OEMs1 E7
  95. 95. Agenda 1 Telematics and motor insurance 2 3 4 The story so far Our experience © Allianz SE 2012 Outlook and key take-aways E8
  96. 96. Telematics Issues identified 7 years ago ... MAY 2005 Political institutions OEMs Insurance companies  Road safety / fatalities  Remote diagnostics  Better risk selection, pricing  Environment  Quality control  Reduced claims costs  Traffic management  Customer relationship  Relationship with client, client retention  New revenue streams  Product design Services provided by TSPs New player: Telematics Service Providers (TSP) Technology company Fleet arrangements  New market opportunity  New charging structures  Revenue streams  Better asset management  New services + revenues © Allianz SE 2012  Receive data from vehicle and match with customer details  Provide call centers for emergency and breakdown calls  Route calls to emergency services and providers of roadside assistance  Data services and analysis for their client (e.g. OEMs) ... led us to develop a unique underwriting strategy E9
  97. 97. Telematics Increasing our Telematics reach selectively across the Allianz footprint Over 78,000 units activated in 9 countries (as of June 30, 2012) 74,277 1,679 741 536 442 248 271 261 88 IT CH FR BG NL GR DE SP CZ Product offer Fleet © Allianz SE 2012 Fleet plus services Services for fleet Services for retail PPU retail & services E10
  98. 98. Telematics Our experience A B C D 15% Type of road 28% 37% 30% 32% 21% 16% 53% 26% 69% 35% 38% 11% 19% Motorway Country City 18% 30% Time of usage Day Night 81% 70% 89% © Allianz SE 2012 Country 82% E11
  99. 99. Telematics Our experience Country E F H 12% 17% 21% Type of road G 35% 37% 48% 13% 66% 18% 35% 70% Motorway Country City 28% 28% Time of usage 79% 24% 33% 72% 67% Day Night © Allianz SE 2012 21% 76% E12
  100. 100. Telematics Our experience 3 (maybe 4) people alive today because of the product 1.1 billion kilometers driven by customers (6mn per day) 15 minutes from notification to recovery of stolen vehicle 15%-points improvement in CR 43% improvement in lapse rate © Allianz SE 2012 83% improvement in cross-selling ratio E13
  101. 101. Telematics Our experience – customer stories (1/3) B-Call: Motorway, June 23, 2012 Customer  On the motorway  With no mobile phone with him  Feeling sick inside the vehicle Operating center 1  Pressed the B-button  Asked for ambulance and a specific medicine  Confirmed the position of vehicle of customer  Remaining contact with the customer  Contacted the relevant A&E1 number, requested ambulance and the medicine  Managed to drive to the hard shoulder of the motorway 3  Some days later, operating center gave customer a courtesy call  Customer felt better and heartily thanked Allianz Telematics 1) A&E = accident and emergency  Checked customer record  Contacted his family for more details Family of the customer  Forward the customer details from the family to emergency health service  Confirmed the arrival of the ambulance 4 © Allianz SE 2012 2 Operating center of emergency health services E14
  102. 102. Telematics Our experience – customer stories (2/3) B-Call: Bra-Cuneo, January 9, 2011 Operating center 1  Driving a car, feeling chest pain  His audio device (to contact the operating centre) barely comprehensive  Pressed the B-button  Said “I am feeling bad”  Heard only a feeble voice saying “I am feeling bad”  Launched a trace to locate the vehicle 2  Customer’s life was saved due to timely action  During the courtesy call days later, customer thanked Allianz Telematics for the “marvelous service”  Customer said: “It was the B-button which saved me!”  Alerted the emergency health service, giving the position of the vehicle Operating center of emergency health services  Sent the ambulance, which found customer unconscious in the car © Allianz SE 2012 Customer  Ambulance took the customer to the hospital E15
  103. 103. Telematics Our experience – customer stories (3/3) Theft: Giardini di Naxos – Messina, April 7, 2011  Customer not sure about the theft  Theft alarm on the screen 02:56  Operator asked customer to call back in 10 minutes 03:01 02:58  Launch of the trace for the localization of the vehicle to follow it on the screen  Phone call plus activation of the Carabinieri to ask them for the number of the relevant police force in Messina 03:11 03:10  Theft is confirmed  Recovery by the traffic police who confirmed that the vehicle was stopped 03:43 03:12  Given the route of the vehicle (along the motorway), operator contacted the competent traffic police (Messina Giardini Naxos) © Allianz SE 2012  Called the customer  Car recovery in less than 1 hour E16
  104. 104. Agenda 1 Telematics and motor insurance 2 3 4 The story so far Our experience © Allianz SE 2012 Outlook and key take-aways E17
  105. 105. Telematics Outlook and key take-aways Allianz has an unique underwriting strategy Proof of concept in Italy - ready for fast deployment in the Group when markets take up European legislation – all new cars pre-fitted with e-call from 2015 on Allianz with unique proposition for OEMs © Allianz SE 2012 Essence is not price competition, but convenience and value competition E18
  106. 106. What the market could see Allianz France in the French market Jacques Richier CEO Allianz France Milan, July 18, 2012 Capital Markets Day
  107. 107. France The French insurance market at a glance Market size and growth (CAGR)  Population1: 65.4mn  GDP (EUR): (Stat.) GWP, EUR bn 1,997bn  GDP/capita (EUR): P/C L/H5,6 30,600  GDP CAGR (2006-2011): +1.75%  Inflation2: +2% 3  Insurance penetration : -0.9% 0 to 4% 237 44 225 44 221 45 193 181 223 to 251 47 176 to 204 176 P/C 3.1% L/H 7.4%  Country rating (S&P): AA+ Market specifics 2009 2011 2014e Market shares in % (2010)  Highly competitive market P/C4  2/3 of motor market dominated by mutuals and banks  2/3 of individual health market dominated by mutuals 2010 15.7 L/H5,6 16.7 15.5 13.7  2/3 of individual life market dominated by banks 12.2 11.2 9.3  Multiple networks beyond tied agents (salaried salesforce, brokers, banks) 15.7 9.4 8.6 7.6 6.5 5.9  Low share of internet in distribution channels  Mid-term market evolution uncertain (tax, social reforms)  Low interest rates challenge life market attractiveness 1) As of January 2012 2) April 2012 (last twelve months) 3) As of end of 2010; defined as insurance GWP/GDP Covéa 4) 5) 6) Axa Sferen Groupama CNP Crédit Axa BNP Ge- ACM Soc Agricole nerali Gen Excl. large risks (Axa, Covéa, AGCS). Incl. impact of Gan Eurocourtage acquisition L/H 2010 GWP excludes employee savings F2 Health GWP excludes inward reinsurance and includes outward reinsurance © Allianz SE 2012 Key data 2011
  108. 108. France Allianz France (1/2) Operating profit (EUR mn) Revenues (EUR bn) +2% CAGR +7% 10.7 11.0 3.4 3.3 3.3 7.3 8.0 7.7 2009 P/C 11.3 2010 2011 26 688 793 613 174 373 662 439 420 2010 Highlights  > 5mn clients (~4.5mn retail, ~500,000 commercial)  ~11,000 employees  > 5 differentiated networks including 1,962 tied agents, 2,218 financial advisors, 326 health advisors, ~1,200 partner brokers  Solvency I ratios1 (31/03/2012) - Allianz Vie: 240% - Allianz IARD: 379% 2011 L/H Margin on reserves (bps) -8.9ppt 106.8 102.7 Claims ratio -44bps 97.9 78.7 75.1 27.6 26.8 2009 2010 2011 67 63 NBM 1.9% 1.7% 1.3% 2009 2010 2011 71.1 Expense 28.1 ratio 107 1) Local regulatory solvency ratios 2) Project referring to mutual funds 3) W Finance = name of the legal entity Legal setup  In 2007 AGF 100% subsidiary of Allianz  Allianz France organizational structure considerably simplified in the past 3 years: number of legal entities cut by 44%  OPCVM project2: drastic reduction of investment SPVs (2009, still ongoing)  Disposal of W Finance3 / Coparc (2011)  Pending closing of the acquisition of Gan Eurocourtage (Q4 2012) © Allianz SE 2012 Combined ratio (%) 2009 F3
  109. 109. France Allianz France (2/2) 2011 Product mix Other 2%1 Motor 30%1 2% Constr. 8%1 Fleets & gps. 13%1 Other 2%1 Overseas 4%1 2% Tied agents 56%1 Risk-adjusted capital 5% 1,352 9% 10% Brokerage 23% 38%1 34% 16% Commercial 19%1 70% 17% 12.9% 24.3% 2011 Non-motor 16%1 Loan insurance Employee benefits 4% internat. 7% Indiv. health 8% Gp. pension 9% Employee 12% benefits Fr. Return on risk-adjusted capital2 1,532 2010 Small comm. 13% 13%1 L/H Profitability (EUR mn) Indiv. life 60% Other Health advisors3 3% 3% Gp. pension 9% 9% Tied agents 19% Financial advisors3 1) Estimated distribution and product mix after integration of Gan Eurocourtage 2) Operating profit as % of RAC eop 3) Salaried salesforce 31% Partnerships & brokerage Risk-adjusted capital 1,939 2,285 36% Return on risk-adjusted capital2 22.6% 18.4% 2010 © Allianz SE 2012 P/C Distribution mix 2011 F4
  110. 110. France Commercial markets – overall positive dynamics Market size and growth Top 5 players GWP, EUR bn CR, % 2010 Ranking & market share3 (% of market GWP) Prop., TPL Constr. Transport Fleets Other1 17.3 06 10 Group health and disability Health Disability PPI5 Group pension CAGR 18.0 ~95% 12% 12% 3. Covea 10% 4. SMABTP 6% CR6, % 24.6 +5% 29.9 10 10 ~99% 16% 2. Malakoff 11% 8% 4. Pro BTP ~99% 1. AXA 3. AG2r-LM 06 7% 5. Allianz 6% Expenses, % of MR7 Reserves, EUR bn 06 64.6 CAGR 10 1) 2) 3) 4) 17% 2. Groupama 10 CAGR 06 1. AXA 2. Allianz + GEC4 +1% GWP, EUR bn 06 ~101% 06 Other: credit, caution, natural disasters and sundry financial losses CRs in French GAAP Agriculture included Market share based on a pro-forma calculation 91.6 N/A 1. AXA 16% 2. Allianz 10 5) Payment protection insurance 6) Health and disability only (excl. PPI) 7) Mathematical reserves 0.3% 16% 3. Groupama +9% 14% 4. AG2r-LM 11% 5. CNP © Allianz SE 2012 Commercial P/C Market profitability2 10% F5
  111. 111. France Our strategy in commercial lines – catching up and leveraging strong historical position Strategy Levers Commercial P/C Re-boost through distributors’ trust and more straightforward operating model  Re-develop brokerage Group health & disability Reposition through distributors’ trust and more straightforward operating model  Brokerage strategy: segment brokers and differentiate value proposition  Develop SME market and risk appetite in mid-corp  Improve underwriting capabilities (reactivity, modularity, expert solutions)  Delegate 100% of health administration and claims to third party administrators Professionals Develop by leveraging our critical size  Reinforce R&D and technical expertise Target professionals as a stand-alone segment  Develop specific standardized commercial approach for professionals  Leverage existing business with SMEs to cross-sell © Allianz SE 2012 Group pension  Focus health advisors on professionals F6
  112. 112. France Retail markets – competitive landscape with different business models Market size and growth Motor Property Other1 Individual health and disability Health Disability Long-term care Individual life Top 5 players GWP, EUR bn CR3, % 2010 Ranking & market share (% of market GWP) 06 23.9 06 26.2 10 GWP, EUR bn 06 19% 15% 4. Groupama 11% 5. Allianz + GEC4 8% 1. MGEN 7% 2. Groupama 7% 3. Harmonie M 6% 4. Swiss Life 4% 5. AXA … 3% … 8. Allianz6 3% CR5, % 06 21.9 CAGR 10 ~92% +5% 10 26.8 Reserves, EUR bn ~96% Expenses, % of MR7 06 1,065.3 CAGR 1,338.6 10 Other: legal protection, third party liability and assistance CRs in French GAAP CR on motor and property only Market share based on a pro-forma calculation 105% 21% 3. Axa 10 1. Sferen 2. Covéa CAGR +2.3% 06 1) 2) 3) 4) 102% 5) 6) 7) 0.88% 1. CNP 19% 2. Credit Agricole 16% 3. AXA 10 Health and disability only (excl. PPI) Individual health only (excl. disability) Mathematical reserves 0.71% 8% 4. BNPP +6% 8% 5. ACM 7% … 9. Allianz © Allianz SE 2012 Retail P/C Market profitability2 4% F7
  113. 113. France French life market – significant constraints with impact on growth potential and market position for Allianz Life market per sales channel (2011, % GWP) Other (inc. Direct) 3% Banks 61% Mutuals 4%  In a market dominated by bancassurance, Allianz has to focus on specific customer segments  Continuous margin pressure due to bancassurers’ lower cost base  Due to Basle III, the share of bancassurers should be lower in 2012 Allianz and peers 32% Life market share per line of business (2011e, % GWP) Pension1 4.8%  Life products in France are used as a tax-supported investment vehicle to build wealth through a series of single premiums Group life 5.0%  Pension business represents around 6% of the GWP Nota bene: Almost 80% of the contracts are individual single premiums Individual life savings 87.5%  Regular saving in France is done through repayment of real estate loans © Allianz SE 2012 Indiv. life-death coverage 2.7% In life, only 1/3 of the market left for insurers mainly focused on single premiums savings products 1) Individual and group pension: 2/3 of the contracts are group pension health and disability only (excl. PPI); FFSA figures F8
  114. 114. France Our strategy in retail markets – defending in P/C while nurturing opportunities in L/H Strategy Retail P/C Levers Attack on the internet & defend on captive retail  Gear-up direct P/C (Allsecur)  Enhance customer-focused multi-distribution strategy  Differentiate tied agents and commissions  Modularize products, including smart pricing Individual health & disability Enlarge footprint  Gear-up direct health (Allsecur)  Develop disability and long term care as key markets  Develop service offers (AGA, Santéclair) Focus growth on up-market segments while containing costs  Target affluents & HNWI (increase average premium)  Leverage Allianz Bank as pillar of the patrimonial setup (managed accounts)  Increase profitability of current offer with more UL © Allianz SE 2012 Individual life (savings)  Develop inforce management approach to extract more value from discontinued products  Reduce number of bank partnerships F9
  115. 115. France Where we expect to be in 20151 High Individual health 638 Group pension 675 Individual life Market attractiveness 4,645 1,593 1,746 Commercial P/C Group health & disability Retail P/C 1,720 GWP 2011 Low Low © Allianz SE 2012 GWP 2015 High Allianz competitiveness 1) Figures in EUR mn F10
  116. 116. France In the French market, Allianz faces challenges yet strong competitive advantages to leverage Our challenges  Further adapt to uncertain, low growth market conditions  Life profitability due to unfavorable market development, tax uncertainty and competing banking savings offers Our assets Financial and technical strength with adequate solvency margin and substantially de-risked balance sheet New organization, more efficient to better serve our clients while reducing costs New brand well recognized and trusted on the French market  Anticipate market concentration in health Strong human capital with a high level of qualification and technical expertise  Digitalization and renewal of IT architecture Differentiated networks benefiting from a common sales methodology © Allianz SE 2012  Integrate Gan Eurocourtage’s portfolio in two years to deliver value F11
  117. 117. What the market could not see Inside Allianz France’s transformation Jürgen Gerke CFO Allianz France Milan, July 18, 2012 Capital Markets Day
  118. 118. France Allianz France – the long way from a traditional company to a modern value generator 1998 Allianz: Multicultural mindset by multiple mergers AGF: PFA: 1840 1881 AGF 1818 to 1819 AGF acquires Athéna 1959 Foundation of Foundation of Le Nord Rhin & (accidents) Moselle Centered on efficiency, pragmatism & proximity AGF under takeover bid by Generali Groupe Allianz acquires AGF (biggest acquisition in Group history) Allianz subsidiary created in France 1844 1818 Foundation of Cie. Générales Maritimes 1819 1840 1998 2007 2008 2009 Foundation of Cie. Le Phénix Vie 1960s 4 major Groups in France: AGF, UAP, GAN, MGF Merger AGF Athéna Allianz TOM OTP AGF becomes Allianz Foundation of Le Phénix Incendie PFA2 1960s 1864 1968 1877 Foundation Foundation Foundation of La Cie. of La Cie. of the Populaire Préservatrice Fonciére Group Foundation of Group AGF 1984 1989 Foundation of PFA after merger of La Prérvatrice & La Fonciére Foundation of Athéna after merger of PFA & GPA holdings 2007 © Allianz SE 2012 Allianz France1 “Big company” culture, expertise, strong know-how Allianz: Buy out of AGF minorities 1) Le Nord, l’Europe, le Monde, la Protectrice, la Fortune, la Vigilance, la Rurale, le Recours, Elvia, Rhin et Moselle and Allianz France 2) Various companies: PFA (Préservatrice Foncière d'Assurance), Athéna and GPA Source: Allianz France G2
  119. 119. France Making a difference in competitive, mature French market through several transformation phases Phase IV: profitable growth  Product rationalization  End-to-end processes  Claims strategy  IT architecture  Digitalization Phase III: distribution, segmentation and industrialization  customers time Phase II: OTP  competitiveness time 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 G3 © Allianz SE 2012 Phase I: TOM  organizational time
  120. 120. France Transformation phase I / organizational time – working hard to catch up with competition From an AGF organization based on LoBs in 2006 … Property Life Product development Product development Sales Sales Sales 4 business promoters Health Product development … to a 95% TOM compliant1 structure in 2011 Business steering / central functions Market management Sales / distribution 99% 96% 92% Operations 91% Operations Claims Commercial Group P/C health & disability M. Hörr Technical area Operations Operations 96% Claims Individual health & medical issues Group pension & employee savings S. Coriat D. Etard S. Coriat TOM compliance rate © Allianz SE 2012 % L. Doublet 1) TOM score as of September 2011 Source: H4 – Group operations G4
  121. 121. France Transformation phase II / competitiveness time – OTP and Allianz rebranding From January 2008 … 55 activities in 14 sites … to December 2011: 25 activities centralized in 10 specialized centers1 S N B A S I C N C Rennes V A Tours S N B Lille Lille as A I V S C S N S C C B A V S I S N C C Reims Rennes Strasbourg V Strasbourg Paris S Nantes V S S C V N S C C B Tours Paris S as I Nantes A S I S N C Bordeaux S V S A C N Grenoble I Lyon Bordeaux Toulouse S Montpellier S A C N S Specialty claims B Brokerage claims as Motor specialties claims S P/C standard N P/C non-standard C Construction I Marseille Operations units’ main activities : A Motor claims I Non-motor claims C BI claims Lyon N C V S S S C N as S Individual health V Individual life C Group life & health 1) Source: Allianz France 2) End of the year Millward Brown results for 2009 and 2010 Nice Evolution of the spontaneous brand awareness2 (in %) V Toulouse A Marseille 25 20 15 © Allianz SE 2012 as 10 5 0 Sep 09 Aug 10 Dec 10 May 11 Dec 11 G5
  122. 122. France Transformation phase III / customers time – starting block for economic recovery Top programs  Grow commercial lines - Commercial P/C - Group health and disability Customer segmentation and multi-channel approach Affluent / self-employed Commercial and pros Capture Retail Secure - Group pension - Pros  Grow retail markets - Individual health, disability and LTC1 - Captive retail2 - “No frills” customers 1) Long-term care 2) Proprietary networks: agents, salaried networks, Allsecur, eAllianz Multi-access Cross-channel © Allianz SE 2012  Digitalization G6
  123. 123. France Transformation phase IV / profitable growth – from “succeeding in the crisis” to “growing successfully” Growing successfully rebranding  Grow smartly in commercial lines  Strengthen retail markets  Simplify / consolidate Succeeding in the crisis  Technical and financial strength  Product simplification  New brand  End-to-end processes (P2B)1  Organization: OTP & TOM  Claims strategy (CS2)2  Repositioning of distribution channels  IT architecture  “Outbehave” the competition (CARE)3 2009 2010 1) P2B: process de bout en bout = end to end process 2) CS²: claims solutions for customer services 3) CARE: collaborative, accountable, role model, efficient 2011 2012 2013 2014 2015 G7 © Allianz SE 2012  Digitalization  Internet: Allsecur, eAllianz
  124. 124. France The precondition: consolidate & simplify – various enablers along the value chain 1  Reduce number of products Distribution Market management  Repositioning and simplifying all distribution channels  Maximize our volume x margin value through smart pricing  Implement a non-life product factory  Evolution of tied agent network  Foster direct distribution via Allsecur and eAllianz Distribution End to end business Optimize processes along the value chain  Rationalize processes for straight through processing of clients’ demand (standard)  Develop reactivity & technical expertise (non standard) Finance and investment overhaul Global rebuild Technical area  Define and execute IT rebuild trajectory based on ABS opportunities Operations Talent management IT  Streamline finance governance, processes and tools  Optimize investment strategy (reducing number of funds and segregated accounts) 2  Aligning workforce structure to transformation targets 3 Finance & central functions Digitalization © Allianz SE 2012 Product positioning 4 G8
  125. 125. France 1 Product positioning – streamlining of product range and product simplification Rationalization of our product range New offers targeting client-, sales- & operations-friendly products # of products: Commercial Retail & affluent 107 82 52 Multi-distribution  Same product through all channels Compliant with the sales process  Reflecting client needs 50 46 56 4 43 1 37 25 27 24 1 23 17 47 22 Today Optimized 31 4 6 Today Optimized 20151 4 20151 33 Tailored Mass-customized Standard 1) Greenfield approach without historical / run-off constraints Modular architecture  Structurally profitable entry offer  Progressively extendable to a full coverage offer  Not comparable in terms of price Product design principles  A common standardized and automated product template  Three types of pricing & underwriting, depending on insured risk complexity: - standard - mass-customized - tailored © Allianz SE 2012 68 G9
  126. 126. France 2 Distribution – repositioning and simplifying of proprietary networks Tied agents Financial advisors Health advisors eAllianz Allsecur In 2011 In 2011 In 2011 In 2011 In 2011  1,962 tied agents  2,218 advisors  326 advisors  285k quotes  5,145 employees incl. 745 CCAs1  600 sales support  80 sales support  2,539 PoS  EUR 34.8k average premium  38.5k policies sold with first contact through eAllianz  EUR 4.7mn GWP In 2015 In 2015 In 2015  1,876 tied agents  2,450 advisors  450 advisors  1,000 CCAs1  EUR 40k average premium  EUR 268mn GWP  60% tied agents with at least two differentiations2 1) CCA = collaborateur commercial d’agence = salespeople in agencies 2) Agents differentiation: commercial, pro, mass market, affluent In 2015  > 10% of new contracts sold via eAllianz  11,607 new policies, incl. 693 in health In 2015  EUR 36mn GWP  80k contracts © Allianz SE 2012  250 managers  EUR 222mn GWP G10
  127. 127. France Talent management – aligning workforce structure to transformation targets Diversity Commercial staff Administrative staff Key topics Steering Use of regular fluctuation and retirement assistance programs Skills Transfer of key skills to areas like P/C expert underwriting Location Steering Geographical transformation across France KPIs Total number of admin FTEs 2010 2011 2015e1 7,0402 6,543 6,190 46.6 48 52 56 3,347 3,450 41.8 42 24 30 Average age admin FTEs (years) Admin + commercial FTEs in province (%) Increased retention and reduced turnover rates Silver liner program Seniors’ retention beyond minimum retirement age Training Develop common sales methodology (S’Energy) Performance Equal treatment for male/female employees 1) Expectations for 2015 not considering the Gan Eurocourtage transaction 2) Excluding W Finance: ~65 administratives and ~130 commercials Total number of com. FTEs (000s) Average age com. FTEs (years) Women at the top (%) 3,5882 G11 © Allianz SE 2012 3
  128. 128. France Digitalization – structuring the business model’s evolution Key topics Self-care Digital claims Online and mobile claims management Digital customer data Data collection enabling a comprehensive customer vision Digital customer correspondence Dematerialization Product simplification and rationalization Front facing workstream Web strategy (corporate and networks) BI platform Consolidation of information platform Internet platform / one web Internet platform rebuild Digital distribution Optimization of distribution networks’ digital visibility Use of new technologies within Allianz 2011 2015e1 7,075 10,441 38.4 89.1 Share of new business online (%) 5.9 >10 Online self-care acts / transactions (000s) 478 1,482 Share of clients emails collected on proprietary networks (%) 26 41 Share of mobile numbers known (%) 40 75 Share of digitalized documents (%) 0 25 Online policy management Digital culture 6 enabler projects Multi-channel strategy including online sales Product efficiency 5 lighthouse projects Online sales KPIs Total number of visits (000s)2 Contract sold, sale initiated from online (000s) 1) Expectations for 2015 not considering the Gan Eurocourtage transaction 2) Number of visits on www.eallianz.fr, www.allsecur.fr and on aggregators where eAllianz and Allsecur are present G12 © Allianz SE 2012 4
  129. 129. France Solid financial performance facilitates external growth – Gan Eurocourtage transaction Grow commercial … and brokerage lines … business  AZ France acquired the P/C brokerage related activities (excluding transport business) of Gan Eurocourtage, a subsidiary of Groupama Allianz becomes #2 in commercial P/C (vs. #4 currently) Allianz: key player on the French brokerage market Reinforcing our position on the retail market: #5 Market share: from 9% to 12% Allianz co-leader on the P/C brokerage market: ~20% market share Market share: from 7% to 8%  Structured as an asset deal  Transferred portfolio: ~EUR 800mn in revenues, total assets of ~EUR 1.9bn; ~600 people will be joining Allianz Additional revenues: ~EUR 390mn  Signing of the deal in June 2012, closing expected for 4Q12 Allianz total revenues in commercial lines: ~EUR 2bn Additional revenues: ~EUR 440mn One of the largest brokerage platforms in France: ~2,500 brokers Allianz total revenues in retail: ~EUR 2.1bn © Allianz SE 2012 Key facts Grow retail markets  A good timing for a good opportunity  Perfect strategic fit: acquisition of cash generating P/C business G13
  130. 130. France Allianz France – key take-aways Success achieved via significant transformation efforts throughout the entire company © Allianz SE 2012 Strong competitive advantages, fostering sustainable value creation in selected business lines, ready for external growth Allianz France – a great company in great shape G14
  131. 131. Turkey – a European growth market Alexander Ankel CEO Allianz Turkey Milan, July 18, 2012 Capital Markets Day
  132. 132. Turkey Turkey at a glance  Population: 77mn  GDP (EUR): 597bn  GDP/capita (EUR): 7,800  Inflation: Market size and growth (CAGR3) (Stat.) GWP, EUR bn 6.5%  FX rate:  Property/casualty & health (P/C&H) market composition: motor 46%, fire 15%, health 14%, casualty 10%, engineering 6%, others 9% 7.3 7.1 8.3 4.8 0.8 6.0 6.2 1.1 1.1 1.5 2009 EUR 1 = TRY 2.342  Semi-regulated insurance market 9.9 5.7 BBB- Market specifics 11% L&P  Insurance penetration1: P/C&H 1.1% Life 0.2%  Country rating (S&P): 18% P/C&H 2010 2011 2014e Market shares in % (2011) P/C&H (rank 4) L&P (rank 10 in life / rank 8 in pension business) 13.8 13.3  Distribution: agency (67%), bank (14%), broker (11%), direct (8%) 25.2 7.8 7.8 17.6 6.7 14.3 12.1  Fragmented market with ~40 players in P/C&H; life & pension (L&P) market dominated by captives of banks4  Continuous soft market conditions with signs of hardening since mid-2011, especially in motor 1) Insurance gross written premiums divided by gross domestic product 2) FX rate as an average for 2011 5.0 Axa Anadolu Ak Yapi Kredi 3) CAGR in local currency 4) Insurance companies owned by banks Anadolu Aviva Yapi Kredi Garanti H2 © Allianz SE 2012 Key data 2011
  133. 133. Turkey Allianz in Turkey (1) (EUR mn) Revenues CAGR (local currency) Operating profit +11% 590  ~1,200 agents 572 31 417 25 487  Over 1.25 million customers 1% 500 P/C&H Highlights 476 16  Co-operation with 440 car dealers 23 25  620 employees 18  Collaboration with HSBC, ING Bank and other banks 5  Local regulatory solvency ratios 138% in P/C&H and 238% in L&P L&P 83 103 96 9 2009 2010 2011 2009 6 2010 2011  Customer loyalty leader in terms of net promoter score Margin on reserves1 Combined ratio (%) (bps) -4.4%-p Legal setup -113bps 212  Ownership P/C&H: 88% Allianz 79.4 74.1 125 99 74.8 NBM -0.5% Expense 26.4 ratio 25.6 2010 2011 3.7% 2009 2010 2011 26.6 2009 1.8%  Ownership L&P: 84% Allianz © Allianz SE 2012 105.8 99.7 101.4 Claims ratio  Market entry: 1998; majority control: 2008 1) Operating profit / average reserves (net) H3
  134. 134. Turkey Allianz in Turkey (2) 2011 Product mix Distribution mix Profitability EUR mn P/C &H Others 10% Banks 6% Casualty 8% Car dealers 13% Fire 17% Life risk 10% Risk-adjusted capital 110 110 22.8% 16.7% Motor 37% Return on risk-adjusted capital1 Health 29% L&P Agents 51% Pension 63% Brokers/others 13% 2010 Corporate 30% 2011 31.0% 20.6% Tied agents 47% Risk-adjusted capital Return on risk-adjusted capital1 19 Life savings 27% 1) Operating profit as % of RAC eop Salaried sales force 29% 2010 22 © Allianz SE 2012 Banks 11% 2011 H4
  135. 135. Turkey Allianz in Turkey – a well-established brand with a long tradition in the domestic insurance industry 1923 1974 RAS established Şark Sigorta 1988 Şark Sigorta A.Ş. merged with Koç Group Partnership with Tokio Marine 1998 Co-branding Koç Allianz 2003 Entered pension business as Koç Allianz Hayat ve Emeklilik 2008 2023 100 years  Allianz bought all of Koç shareholdings  Clear commitment to the Turkish market  Names changed to "Allianz Sigorta" (AZS)1 and "Allianz Hayat ve Emeklilik“ (AZHE)2 Today Samsun Bursa Izmir Malatya Adana Corporate structure AZS AZHE Allianz SE 84% 86%  620 employees Ankara (capital)  Headquartered in Istanbul  11 regional offices nationwide Kocaeli Allianz Sigorta A.Ş - 2%  Customer loyalty leader in top down NPS3 survey Tokio Marine Nichido 10% 11% 6% 1% Others © Allianz SE 2012 Istanbul Antalya 1) P/C&H business 2) L&P business 3) NPS = net promoter score H5
  136. 136. Turkey Turkey – strategically placed between Europe and Asia Bulgaria Black Sea Key data 2011  GDP (EUR): 597bn  GDP/capita (EUR): 7,800  Inflation: Turkey 6.5%  Inflow FDI1 (EUR) Greece Armenia Azerbaijan 12bn  Outflow FDI1 (EUR)  Net FDI1 (EUR) 1) FDI = foreign direct investments Iran Mediterranean Sea Cyprus Syria Iraq © Allianz SE 2012 77mn ean A eg a Se  Population: Georgia 2bn 10bn H6
  137. 137. Turkey Turkish – stereotype or source of creative entrepreneurial talent? Mention Turkey, you think of ... It is also a source of entrepreneurial talent Muhtar Kent © The Coca-Cola Company … Istanbul – a city on two continents Chairman of the Board and CEO The Coca-Cola company Hikmet Ersek … Mediterranean beaches, sun and sea © Western Union … doner kebap 1) As at March 2010, behind New York, Moscow and London Mesut Özil Soccer player, Real Madrid and German national team Nominated for Golden Ball Award in 2010 FIFA World Cup © Allianz SE 2012 © Real Madrid C.F. … “Gastarbeiter” – guest workers President, CEO and Director The Western Union Company With 28 billionaires, Istanbul is ranked 4th in the world for highest number of billionaires1 H7
  138. 138. Turkey Turkish economy – strong growth expected in the medium term, interest rates and inflation remain high, but declining  Inflation linked tariff adjustments for relevant products, especially motor  Strict procurement management  Network cost management (spare parts, labour costs etc.)  Overhead cost controls  Medical inflation-based pricing in health  Transformed from fixed to variable compensation model in distribution Inflation rate 15% 10.4% 10% 5% 0% Jan ’07 Jun ’07 Dec ’07 Jun ’08 Dec ’08 Jun ’09 Dec ’09 Jun ’10 Dec ’10 Jun ’11 Dec ‘11 Mar ’12 Nominal interest rate 25,0 22,5 20,0 17,5 15,0 12,5 10,0 7,5 5,0 Jan ’07 Benchmark bond yield Central bank‘s central rate 9.43% 5.75% Jun ’07 Dec ’07 Jun ’08 Dec ’08 Jun ’09 Dec ’09 Jun ’10 Dec ’10 Jun ’11 Dec ’11 Mar ’12 GDP growth -1.1% -4.5% 8.9% 8.5% 7.0 2.6 0.9 5.9 12.2 10.2 5.3 9.2 11.9 9.1 8.4 5.2 -7.0 -14.7 -7.8 -2.8 © Allianz SE 2012 Our actions in a high inflation environment 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2008 2009 2010 2011 Strong growth H8
  139. 139. Turkey Our strategic initiatives – ensuring profitability and reasonable growth 2 Profitable growth in non-life Health profitability and sustainability 3 4 Life and pension expansion Cost competitiveness © Allianz SE 2012 1 H9
  140. 140. Turkey P/C and health – market is experiencing strong growth, however at the expense of underwriting results 1 Market GWP Market CR Market profitability (EUR bn) (%) (EUR mn) Growth y-o-y1 3% 14% 7.0 6.0 22% 6.2 4.82 2008 109.6 112.0 107.5 105.9 Underwriting result -178 487 Investment income 2008 2009 2010 2011 2008 2009 2010 2009 -267 382 2010 -386 344 2011 -311 336 2011 CAGR1 2008-2011 12.4% 242 74 -75 1) Growth / CAGR in local currency 2) Decrease 2009 versus 2008 driven by FX development © Allianz SE 2012 Net income -6 H10
  141. 141. Turkey 1 Allianz maintains profit focus, peers’ market share focus deteriorates market profitability Total P/C&H market (local GAAP, in EUR mn) Loss maker : -138 Ergo -24 SBN Profit maker : 132 -22 22 Yapı Kredi 18 Allianz 17 Ziraat Aviva -14 Dubai -14 13 Ak Liberty -13 12 Sompo Japan Zurich -10 11 Eureko Groupama -8 10 Mapfre G. HDI -7 9 T. Nippon -6 3 Axa Halk -4 2 Chartis Neova -4 2 Işık Euro -3 2 Generali Ankara -3 2 Anadolu Demir -1 1 Coface Hür -1 1 Ace Europe E. Hermes -1 0 BNP Paribas Koru 0 0 Atradius 0 Ray 0 Magdeburger -6 2011 Source: association of insurance and reinsurance companies of Turkey Güneş © Allianz SE 2012 Net income H11
  142. 142. Turkey 1 Profitable growth in non-life – further exploit e.g. motor growth … Motor profitability back on track Key actions Focus in 2012 is profitable growth Allianz growth vs. market Continuously review and consolidate motor tariffs 20% MOD MTPL 15% 2011 Tighten underwriting rules and filters 2011 10% Recruit profitable non-exclusive agencies 2009 5% Non-exclusive agency # 0% 2010 160 248 421 2009 Exclusive agency # -10% 2010 2011 764 773 767 2009 2010 2009 20% 15% 10% Car dealers # 5% 0% -5% -10% -15% -20% 2010 2011 353 406 440 -25% Allianz loss ratio vs. market Based on local accounting standards (statutory). Loss ratios are net loss ratios Source: association of insurance and reinsurance companies of Turkey H12 © Allianz SE 2012 Expand branded MOD to new car brands, introduce new products to improve retention -15% -20% 25% 2011 Protect profitable exclusive agencies with inheritance and loyalty program 2009 -5% 2010
  143. 143. Turkey … while protecting our profitability via constantly stepping up reinsurance protection in earth quake risks 1 Excess of loss reinsurance protection on retained amount1 (EUR mn) N Meeting RMS112 requirements 328 228 188 138 0 120 Kilometers I. Degree II. Degree III. Degree 2008 2009 2010 IV. Degree Boundary of province V. Degree © Allianz SE 2012 Source: Republic of Turkey ministry of Public Works and Settlement (1996) “Analysis of Earthquake Zones with Geographical Information System”, prepared by B. Özmen, M. Nurlu and H. Güler (1997) Capital of province 2011 1) Reinsurance protection refers to the excess of loss reinsurance program that Allianz purchases for its net retention. Net retention is the amount after recoveries from proportional treaties and facultative reinsurance 2) RMS = Risk Management Solutions = company providing models for perils such as natural catastrophes, terrorism etc. H13
  144. 144. Turkey 2 Health profitability – accelerate new business in retail health Customer  Focus on gaining new customers in desirable segments (young clients, lower middle class clients)  Active churn management to improve retention Distribution Product & pricing  Expand health agency network  Increasing sales productivity  Strict portfolio management rules and pricing approach  Modular product platform with network selection  Launch supplementary product (filling social security gaps) Operations © Allianz SE 2012  Continuous monitoring of rising medical costs  Implementation of cost control initiatives and further automation  Service enrichment especially during hospital admissions H14
  145. 145. Turkey 2010 - 2011 Focus in 2012  Build agencies focused on selling L&P with variable compensation  Over 100 agencies created  Revised commission structure (higher variable)  Introduced monthly and annual incentives Distribution Compensation  Partner with Allianz Global Assistance (AGA) to enrich product value proposition  Explore exclusive bancassurance partnership Enhanced sales reporting and management tools   Further system enhancement Web-based sales applications for policy issuance   Increase sales productivity Appointed new asset manager (fund performance)  Operations   Product Introduced new product range (life stages)  Further recruitment of agencies Support distribution with calls to VIP customers (after-sales service) © Allianz SE 2012 3 Life and pension – good progress in our core initiatives H15
  146. 146. Turkey L&P business of Allianz profitable, but still sub-scale 3 Total L&P market (local GAAP, in EUR mn ) Loss-maker : -37 Aegon (L/P) BNP Paribas (L/P) Profit Maker : 178 -14 46 Garanti (L/P) 26 -9 Ergo (L/P) Cigna (L) -5 ING (L/P) 21 -6 -3 17 Anadolu (L/P) Ziraat (L/P) Yapı Kredi (L/P) 14 Halk (L/P) 13 Aviva SA (L/P) 11 Deniz (L/P) Net income 7 Axa (L/P) 140 6 Vakıf (L/P) 3 Allianz (L/P) Acıbadem (L/Health) Mapfre GY (L) 2 BNP Paribas (L) 1 Metlife Alico Life (L) 0 Groupama (L/P) 0 Demir (L) 0 Civ (L) 0 Source: association of insurance and reinsurance companies of Turkey 3 3 2011 Finans (L/P) New Life Y (L) © Allianz SE 2012 4 H16
  147. 147. Turkey 4 Cost competitiveness – initiatives on automation and digitalization … 2010 Retail underwriting automation project Service level2 Implement BRE3 67% 86% Fire level 2012e Motor 91% 97% Motor 54% 73% Fire Improve STP1 and service level2 STP1 NA 89%  Data entry screen enhancement  BRE3 & BPM4 implementation Productivity  E-documentation, e-distribution, e-archiving Claims automation and digitalization Remote online inspection Agency claims support system Digital claims Controls 72% of network integrated Online claims submission system (P/C) Flexibility, adaptability to market movements  Paperless  Process automation Fraud management © Allianz SE 2012  System enhancement  Database integration  Automated detection  Field audit 1) STP = straight through processing 2) Service level = customer request can be completely answered/finalized during a telephone call 3) BRE = business rule engine 4) BPM = business process management H17
  148. 148. Turkey 4 … lead to clear improvements of our productivity and expense ratios Productivity KPIs are improving P/C&H 2009 2010 2011 Total internal expenses (TIE)1, EUR mn L/P 2009 2010 2011 % of GWP2 TIE 2.7 2.2 1.6 2.1 1.9 14.0% 1.2 GWP per FTE 12.5% GWP (TRY mn) 903 975 2.3 2.7 1,104 1104 179 206 223 5.2 3.0 62 2.6 Policy count per FTE 76 11.9% 69 1.5 # of policies (thousand) 1,349 1,414 1,535 1349 1414 1535 277 263 429 4.6 2.1 2.1 2009 2010 © Allianz SE 2012 Customer count per FTE 1.4 1.8 2011 1.4 # of customers (thousand) 821 937 1,052 1052 195 226 374 1) TIE = gross administration costs (without reinsurance effects) + gross acquisitions costs before commissions + gross loss adjustment expenses 2) TIE as % of GWP in local currency H18
  149. 149. Turkey In summary, Turkey is an attractive growth market, Allianz is well positioned Market Allianz Turkey 1 Strong GDP growth 1 Strong capitalization and healthy solvency ratios 2013 2014 2.5%1 5.5%1 5.5%1 Market is fragmented and is at an early stage of consolidation Number of insurers Non-Life 40 Life 25 CAGR 2010-2015 4 16%2 Life 14%2 151% 149% 138% 2009 2010 2011 Allianz 46.8% 45.6% 40.2% 39.2% 42.4% 38.8% 2009 2010 2011 Allianz 107.4% 102.2% 99.2% 109.6% 112.0% 107.5% Allianz 2 Strong reserves position relative to most peers Reserve ratio (local GAAP) 3 Strategic emphasis on writing profitable business Lowest CR amongst peers (local GAAP3) 4 Strongly expanded distribution force in the past 3 years Main channel is agency but also strong in corporate and car dealers channels 2009 2010 2011 Distribution force Agencies Non-Life 1.1%2 Life 0.2%2 EIU forecast BMI / BMI forecast CR in local GAAP; CR shown on slide 3 based on IFRS data NPS = net promoter score 924 1,021 1,188 Car dealer Low insurance penetration rates Penetration as % of GDP 2010 1) 2) 3) 4) Non-Life 2011 Market (local GAAP) CR 3 High industry growth potential in the medium term 2010 Solvency ratio, P/C&H 353 406 440 2009 2010 2011 14.0% 12.5% 11.9% 2009 2010 2011149 Allianz 37.5% 29.2% 47.0% Market 24.7% 19.9% 27.9% 5 Reduced cost base Total internal expenses as % of GWP Allianz 6 Established reputation and brand name No. 1 in NPS4 © Allianz SE 2012 2012 2009 Market 2 2011 8.5% GDP growth H19
  150. 150. IberoLatam region – leverage best practice Vicente Tardío Regional CEO Iberia and Latin America Iván de la Sota CEO Allianz Seguros (Spain) Milan, July 18, 2012 Capital Markets Day
  151. 151. Agenda 1 IberoLatam region 2 3 Allianz Spain – the road to success 4 Allianz in Latin America © Allianz SE 2012 Allianz Portugal – business model implementation example I2
  152. 152. IberoLatam region Where do we stand? (Stat.) GWP (EUR mn) 2011  EUR 5.8bn (stat.) GWP  EUR 689mn operating profit  EUR 470mn net income  6 countries  More than 5,000 employees  6mn customers out of 450mn total population Spain 2,976 Portugal 533 Brazil 1,366 Colombia 373 Mexico 384 Argentina 179 Operating profit (EUR mn) 450 Spain 64 Portugal 76% Colombia (Stat.) GWP: Non-life: EUR 4.4bn Life: 111 Brazil 30 Mexico 18 Argentina © Allianz SE 2012 24% 17 EUR 1.4bn I3
  153. 153. IberoLatam region IberoLatam region Representing 6.0% GWP and 10.4% operating profit of Allianz Group insurance business 2011 (EUR mn) Allianz Group IberoLatam region Share in Group results Non-life 44,772 4,434 9.9% Life 52,863 1,377 2.6% Total 97,635 5,811 6.0% Non-life 4,196 532 12.7% Life 2,420 157 6.5% Total 6,616 689 10.4% (Stat.) GWP Operating profit Claims ratio 69.9% 67.0% -2.9%-p Expense ratio 27.9% 24.5% -3.4%-p Combined ratio 97.8% 91.5% © Allianz SE 2012 Δ to Group Combined ratio (%) -6.3%-p I4
  154. 154. IberoLatam region A global strategy Focus on profitability and growth outperforming the market, through a common business model Iberia:  Outperform the market in terms of growth and profitability in a shrinking market  Focus on life growth opportunity considering lack of confidence in banks  Priority on profitability, customer retention, capital protection in competitive markets Latin America:  Lever on the Spanish IT platform as growth driver for premiums and profitability © Allianz SE 2012  Full transformation to the new regional business model  Outperform the market in terms of growth  Focus on retail leveraging the emerging middle class  Cost discipline during periods of growth I5
  155. 155. IberoLatam region IberoLatam project Roll-out of the Spanish business model and IT platform in the region  Spain provides a superior business model for retail, SME and corporate  An excellent IT platform allows to shape the business model of the OEs, integrating the region  The full IT platform implementation represents a technological leap for the OEs  Significant efficiency improvements in most strategic lines of business  Leverage on regional synergies  Leadership based on local organizations  Business model set up is performed with the support of Allianz Spain employees’ know how © Allianz SE 2012 Regional governance I6
  156. 156. IberoLatam region Spanish business model  Make it simple  From an ex-ante control to an ex-post one  Legal and market specifications © Allianz SE 2012 Key points  Operational harmonization I 6b
  157. 157. IberoLatam region IberoLatam project timeline 2008 2009 2010 2011 2012 2013 … 2 Allianz Colombia  IT platform implementation  Stabilization phase Big bang 1  IT platform implementation  Business model transformation Big bang 3 Allianz Brazil Big bang  IT platform development  IT platform launch  Business model transformation 4 © Allianz SE 2012 Allianz Portugal  Business model transformation Allianz Argentina and Mexico June 2012  Waiting in line … I7
  158. 158. IberoLatam region Latin America, a key emerging market Getting opportunities in selected countries Insurance penetration in % of GDP Non-life  A sound economic environment and favorable regulatory changes have driven insurance premium growth  Recent concerns about US economic growth and the Eurozone debt crisis highlight the resilience of Latin America’s market 3.6% 3.5% 1.1% 2001 Industrial markets Emerging markets Latin America 2010 Life 5.5% 5.1% 1.1% 0.8%  Although insurance premiums have shown notable growth, insurance penetration is still low 1.3% 1.5% 1.4% 2001 Source: Swiss Re Sigma 1.7% 1.1% Industrial markets Emerging markets Latin America 2010 I8 © Allianz SE 2012  Latin America’s premiums have grown robustly by 6.9% last decade, compared to growth of 1.3% in industrialized economies

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